Pyramid Scheme – yes the Ponzis and Madoffs.People pass money to those above them in the pyramid (their recruiters) and wait to receive money from their recruits.There’s never enough money to repay all the investors.

Business and Internet Scams — prey on people’s ignorance of the rules of business and accounting.

Stock Market Scams – the scam artist owns several worthless stocks and invite (actually hard sell) victims to invest.When the value of the stock increase, the scam artist sells their shares and disappears.

Home Improvement Cons – A roofer might get half way through the job and then demand more money.The contractor might have a clause in the contract allowing him to put a lien on the house and foreclosure for missed payments.Also beware of cheap materials, shoddy workmanship, and unnecessary replacements.

Loan Scams – debt removal services provide homeowners with (worthless) certificates.Certificates invalidate homeowners’ mortgage or other debt in exchange for a large fee.

Mortgage Refinance Scam – Scammers prey on people who are already in financial trouble.He wants easy foreclosure on the homes.

How to Avoid a Scam

You never get something for nothing

Guard your personal information

Don’t accept solicitation

Ask lots of questions

If You’ve Been Scammed (this happens even to the most street-wise)

Contact the authorities

Contact your local TV stations

Provide documentation – receipts, contracts, phone records

Expose cons and their tactics. Minimize the number of potential victims